Treasury Secretary Mnuchin says ultra-long bonds are being considered by the Trump administration

Treasury Secretary Steven Mnuchin said ultra-long U.S. bonds are being considered by the Trump administration, according to Bloomberg News.

The 50 or 100-year bond idea recently gained popularity in the Treasury but was considered as early as 2009, according to the report by Bloomberg.

Issuing the long-term debt would limit the cost to taxpayers of plugging the almost $1 trillion annual budget deficit and could provide returns to pension funds despite falling yields.

Treasury Secretary Steve Mnuchin speaks during a TV interview at the White House in Washington.

Kevin Lamarque | Reuters

Treasury Secretary Steven Mnuchin said ultra-long U.S. bonds are being considered by the Trump administration, according to Bloomberg News.

"If the conditions are right, then I would anticipate we'll take advantage of long-term borrowing and execute on that," Mnuchin said in the Bloomberg News interview on Wednesday.

The 50- or 100-year bond idea recently gained popularity in the Treasury but was considered as early as 2009, according to the report by Bloomberg. Issuing long-term debt would alleviate the pressure on taxpayers to stymie the almost $1 trillion annual budget deficit and could mean returns to pension funds despite falling yields.

Mnuchin told Bloomberg the consideration of long bonds and the drop in yields on short-term U.S. debt are unrelated.